I also plan to put the rental into trust for my son when he turns 18, but I am confused about the levy
Q I am really confused about capital gains tax. I’ve just put an offer on a second house, in which I plan to live. I also plan to release equity from my current home and turn it into a rental property as it is very lettable. I bought my current home approximately 13 years ago for £130,000. It is now worth £265,000. My hope is to release 75% of the equity in it to buy my new house.
What capital gains tax will I have to pay? It was rented out for two years when I worked abroad and I plan to rent it out for another five years after I buy my new home. I only have estimates of solicitors’ fees and so on when buying the house I plan to let as I didn’t keep records and lost some documents when I went to work abroad.